People
have asked me whether some natural people (not organizations, etc.)
would ever be forbidden to join our exchanges. In answer, we have
all become vary well aware of certain kinds of “business” which
are less than honest. Again, for the awake, two words; gift and
graft.
Most
have heard of graft. That's where someone enters into a
contract with some “insider” for the intended purpose of
defrauding a third party: two parties/entities agree to defraud a
third party. That's graft in its simplest form. In our common
parlance, graft is described as a form of political corruption, being
the unscrupulous use of a politician's authority for personal gain.
Our definition tells you exactly what graft is and shows you exactly
how it is usually accomplished. Those engaged in such activities
we'll call grafters from now on, not to be confused with
anyone engaged in agricultural grafting of trees or plants.
Following
our definition, graft includes all kick-backs, payoffs, all inflation
and cost overruns, everything that increases the bottom line for the
third party, the intended victim, usually some government. It's
commonplace to regard money stolen in this way as from the taxpayers.
That line of argument assumes wrongly, that taxpayers'
contributions to their government(s) implies that taxpayers deserve
some sort of accountability or influence over policies, etc. As
George Carlin said, you don't. You can't reasonably deserve or
expect any accountability or influence, because none of the money you
have ever used actually belongs to you. Besides which, you are not
willingly paying your taxes, you are FORCED to do so and part of the
reason this coercion works so well is that the taxpayers are cajoled
into believing that political participation really means something
while those doing the tax collecting know exactly whose money it is
and where it's going. Our position must be to regard taxes, THEIR
money, everything to do with THEM as FORCES of Nature that must be
endured while they exist. Meanwhile, we must go about our own lives
and businesses, helping each other, since this is not anything anyone
can do all by themselves, to build our own grass roots economy. When
THEIRS falls apart and THEY come after us with some new scheme, we
can say, “sorry, we won't need you any more, in fact we won't have
you any more.”
Grift
is the general term for a swindle and a grifter is a swindler,
pure and simple. The usual kind of fraud is to promise something and
then deliver an inferior product or service, or even nothing at all,
taking the majority of the proceeds directly into the fraudster's
accounts, whether they be foreign or domestic.
Beware.
Many private and public non-profit organizations, various so called
charities, etc. fall into this category, as grift. We have every
reason to regard these organizations generally as tax dodges for the
rich, or money laundries, where money comes in from some illicit
trade, is socked into one of these foundations and then distributed
to those who made the money through illicit trade, attempting to
cover their tracks and avoid taxes.
Our
proposal has nothing to do with such arrangements and that's why no
non-profit organization can ever be B members of any of our
exchanges. This proposal is neither a tax dodge nor a money laundry.
All so called “publicly held” corporations are also excluded
from our membership. We jettison a lot when advocating for a
complementary monetary system that actually belongs to us. We do not
see fit to include businesses whose owners are anonymous and own
something without the liability or direct responsibility for owning
it. Shares in any “public” corporation are under limited
liability protection, which means that THEIR corporations can
literally get away with murder.
Every
potential natural person A member must fulfill certain basic
requirements; must be 18 years of age or older, must be legally
entitled to live where they are (domicile within the boundaries of
the exchange), must be sponsored by two other A members. But I can
assure you that every exchange will be asking in addition whether any
prospective A member has ever been convicted of a crime. Obviously,
we can ask such a question and will probably be legally required to
do so. One could just say no and if one is later discovered to have
been a convict, can be thrown out of the exchange and a prohibition
placed on their ever being a member again, or for a sufficiently long
time, perhaps five years. Of course some have made mistakes and paid
for their crimes and that's fine. If you admit it and explain
yourself adequately, you're probably in.
We
have as well to consider the needs of the tremendous homeless
population. There are some who literally live on the road and these
people need to be helped to have their own too. But most places
require some residency requirements, in most states it's six months.
If one has been homeless, but is a real citizen of the United States,
one can try and move somewhere else where meaningful work is
available and rent for lodging is still cheap. Stay there for six
months, establish state citizenship in that new state, etc. and go on
with one's life. But few will be doing this. There may be many
reasons. We suspect that drug abuse and mental illness, stress
disorders, any number of things, contribute to this situation. Our
message to any of them who are still able bodied and mentally
capable, is that real wealth begins with you. We call it innate
wealth, since you by your own efforts are capable of producing
an income. If you have certain skills that can help anyone else
live better, your chances for finding a place in society are better.
Another
group we will watch carefully are people claiming to be what they
aren't, fake professionals without valid credentials, required
licenses, insurance, etc. If you're a fake professional and are
caught, you're out. But we'll want sufficient proof of your right to
practice where that is required by law. OK students, in which category
of scoundrels do we class fake professionals? That's right, they're
grifters.
How
many other attempts at a complementary monetary system ever address
these kinds of issues? Did you guess none? That's right. The basis
for any and all money is TRUST! Ask yourself how much trust is
assumed or disregarded when buying into any of THEIR
cryptocurrencies. It's all on THEIR internet and there are numerous
terms and conditions that limit liquidity that those advocating their
use never mention. Again, this is all just more of THEIR money, not
yours. It's economic basis is FALSE too so don't be deceived. They
all follow the WRONG limited quantity of a fixed commodity as a basis
for money. It's a fine basis for a “buy and hold” asset perhaps,
but not for a unit of exchange. Besides, most people don't want it!
Again,
this proposal involves people, people to people in action. Normal
people live in the PERPETUAL EXPECTATION OF CONTINUING PEACE and are
usually aware of anything that causes a disruption in that flow.
We're not talking about natural or other tremendous disasters. We're
discussing ordinary day to day interactions among people. Yes, it
involves an implicit trust, just the same kind as most people observe
at traffic lights. Concerning our proposal, let's break it down:
We
begin with E. C. Riegel. Everyone reading this probably needs to
read all of Riegel's works, posted on this blog. He observed that
money springs into existence to settle barter using credit
instruments instead of actual goods and services. Barter never goes
away even though money is used. We have by now all heard of
economics prattlers trying to convince us that trade by whole barter
and trade using money are somehow different. The primary usefulness
of money is to split barter. Barter itself never goes away and
settling terms of barter is completed when services or goods are
finally exchanged for goods or other services. Money is used as the
go between and is able to assume this role because its ability to
measure value in any sale is trusted by all who use it.
Right
now, we all use money that, those of us who have read and fully
understood this blog would know, is illegitimate. It's money all
right, in that it still settles the terms of barter for billions of
people a day, but its provenance, where it issues from, is not
legitimate, because it was all issued by non-producers! Legitimate
money proffers something in exchange for something else, either a
service for a good, a good for a good, a service for a service or a
good for a service.
What
do you have? You have something you can do for someone else
that they would pay you to do if they had the money. What if they
don't have the money? The work doesn't get done and you don't have a
job. Who has control over this? Right now, that would be the point
of issue of all that money, the central banks and the governments
that are their perpetual best customer debt slaves. The central
banks lend what they do not have and charge interest from uncreated
money. That automatically makes it impossible to pay all the debt at
once in such a system and results in a “musical chairs” economy;
someone else might have gotten the money to do the needful work and
the jobs went there instead. Who decided? The bankers. It's THEIR
money, stupid!
So
you still have that innate wealth inside you and
someone needs your help, but they don't have the money, until now.
Well, everyone gets two hundred Valuns to begin with, but we've been
talking lately about how the various accounting nuts and bolts fit
together to make it all work.
So
now, we get down to the nitty gritty. Here's something THEY never
taught you in school because THEY didn't want you to be self-aware,
self-actualized, self-assured, any of that. You were all kept from
understanding the basics of simple accounting and why it's
absolutely essential to all of you. Some of you may not be
that smart, might be terrible with numbers, but someone else among
you is naturally very good with numbers and probably would not mind as much the
effort involved in helping others to get themselves properly set up
to run on their own. How many of you were ever taught how to balance
a checkbook? Not many. Most in fact use running balances on their
bank accounts without doing much account balancing. But to stay “in
the black” one usually uses some form of intuitive balancing
anyway.
The
new understandings that come from the new accounts we have described
are that everyone has assets and liabilities. One has
assets that are fully and partially paid for, the remaining debt is
considered a liability. In standard double entry accounting, there
is an equality between assets on one hand and liabilities plus
capital on the other, outlined thus:
assets
= liabilities + capital
Accounting
considers anything that can be determined in terms of money. In our
case, Valuns. Every A member has three balances on their account
with an exchange; Issuance, Income and Escrow. Issuance is an asset
and also capital. If one listed one's Issuance, it might look like
this:
Asset:
Issuance V200 = Capital: Issuance V200
If
one had a debt of V30, it would show up as
Asset:
Escrow -V30 = Liability: Escrow -30
Were
this all there was to balance, the result might look like this:
Asset:
V170 = Liabilities: -V30 + Capital: V200
Now,
you still need to raise your issuance balance, which means you will
need to issue Valuns for something to buy. We allow you to issue
Valuns through a labor contract. This does something automatically
to every single Valun issued in this way; it is all backed by the
work performed by the A member. You issue it to either a B member
employer or to the exchange itself as a stand in for those employers
that cannot be B members. You buy a job with your own money, you get
paid back with the money you issued. That money is now backed by your work and your ability to pay the extra taxes if required.
How
much money are you allowed to issue? What are your restrictions?
Income taxes is one. You will need enough money of THEIRS to pay
taxes. The more Valuns you issue, potentially, the more taxes you
will be required to pay in THEIR money. So in conducting business
using Valuns, your prices for goods or services would be in Valuns
and however much of THEIR money you will need to pay taxes. Your
labor contract will not include anything about THEIR money, so you
will have to determine what that percentage of your income in THEIR
money will be required of you to cover taxes.
Now,
each dues paying A member gets an account with V200 in it. They also
get to do something else, to set up as a B member as well. Most
exchanges will want to see a DBA 'doing business as” usually from
the county the exchange serves. An A member with a DBA can open a B
membership account without charge. The exchange will still collect
one tenth of one percent of all transactions from one account to
another and there is no difference between accounts as far as
transaction fees go.
The
B member account also has three balances, Equity, Income and Escrow.
The key element to begin with is the Equity that can be assigned to
the account; what tools, accessories, etc. that are fully paid for,
without extenuating debt in any of THEIR money? These are listed as
assets and added to the Equity balance. As well, you can take all of
that and add 10% of it as goodwill. You would be determining what
all this is worth in Valuns on a particular date. If you have
product you intend selling for Valuns, you list that and give your
approximate purchase price in Valuns for the items and these are
listed among the assets in the Equity balance.
Now
you also consider that you're just starting and have no income. So
we allow you to project six months of income in Valuns in
the Income balance. We may decide that income for this purpose can't
be any more than 10% of the total Valuns in the completed Equity
balance.
Now
the 80% rule that says you can't have Escrow more than 80% of your
combined Equity and Income balances. Let's give you some ranges to
consider: On 8/2/19 a Valun was $2.51
Company
ABC
Equity:
V1,000 = $2,510.00
Income:
V100 = $251.00
Escrow:
V880 = $2,208.80
Company
DEF
Equity:
V2,500 = $6,275.00
Income:
V250 = $627.50
Escrow:
V2,200 = $5,522.00
Company
GHI
Equity:
V10,000 = $25,100.00
Income:
V1,000 = $2,510.00
Escrow:
V8,800 = $22,088.00
Company
JKL
Equity:
V50,000 = $125,500.00
Income:
V5,000 = $12,550.00
Escrow:
V44,000 = $110,440.00
Company
MNO
Equity:
V100,000 = $251,000.00
Income:
V10,000 = $25,100.00
Escrow:
V88,000 = $220,880.00
These
examples will cover the range most encountered for single
proprietorship businesses. The amounts in Equity are permanent or subject to changes effecting inventories, depreciation, etc. Those in Income are for six months. Those in Escrow, including your job, could be for any contractual duration. Most labor contracts would coincide with a tax year and be renewable or not as required. Pay particular attention to the Escrow
balances because these limit how many Valuns you may issue to buy a
job in your own company.
Your
Issuance balance now has V200 in it and you decide to leave it there, but it can be increased right
away with a labor contract you have with your own company. Let's say
you're ABC. Let's say you have no existing credit contracts
requiring regular payments so the entire ABC Escrow balance may
decide how many Valuns you presently want to earn. That's V880.
Carried over twelve months, that's V73.33 per month.
Your
Issuance balance V880
to
ABC Escrow balance
Your
issuance balance V0.88
to
local exchange
Congratulations!
You just raised your Issuance balance from V200 to V1,080 and each
month as you collect your Valuns on whatever payday you choose, your
Issuance balance is reduced back to V200 and you increase your Income
balance by V880. That might be something like $2,208.80 over a year,
hardly enough to rock anyone's boat. BTW, you pay the transaction
fee of eighty-eight cento / fen to the exchange and that is paid back
to your Issuance balance as you get paid in your Income balance.
Now
you can look where you might fit into this design. What size is your
projected business? Whatever you earn in Valuns you will also need
to earn some of THEIR money to pay all those things that must be paid
in THEIR money. But these examples give you some kind of framework
from which to proceed.
What
are you building in the Equity balance? The actual value of a
business in Valuns; what someone else might be willing to pay for
your business in Valuns. You might be of a kind that starts
something, gets it up and running and then sells it off to someone
else and moves on to do something else. Doubtless there are other
ways of figuring out what your business might fetch in THEIR money.
You would merely add the Valun basis into the basis in THEIR money
and come up with what it would cost someone else to take over your
business. Of course the larger your Equity and certainly your Income
balances become, the more debt you can take on as included in your
Escrow balance.
Another
thing you can do is advertise with your local exchange. These
matters are expected to be conducted in THEIR money and all
advertising with an exchange would be tax deductible because
advertising is certainly to be one of the primary businesses of each
and every local exchange.
Figuring
how much you will need to take in, in THEIR money as well as Valuns,
is based on THEIR local sales tax percentages and any other taxes
which apply plus whatever figure is needed to cover overhead that
must be payable in THEIR money.
Let's
say that the sales tax is 8% and the item(s) for sale are V100. So
that's V8 required for taxes. Today a Valun is $2.51 so that's
$20.08 on a sale of $251.00. You'd be asking for V100 plus $20.08
for your trade.
We
have presented here a framework to better understand how to
visualize, set up and get running your own business, when the time
comes. It's actually pretty simple. But one thing you'll notice
which is quite different from anything THEY have to offer; you are
really doing everything yourself and it all belongs to you. These
Valun based businesses are not some “build it and they will come”
concept by some nameless faceless corporation that has officers and
other responsible people far away in some city you never intend to
visit. These are businesses that you build yourself, with less of
THEIR money and more of your own. You pay your way in THEIR money
and make your own money in ours. It's really the only way forward
because there is something I just saw called “Stein's law.”
Herbert Stein, yes, one of THEIR economists said, "If something
cannot go on forever, it will stop." That applies to ALL of
THEIR money for a variety of known reasons. It's not a new idea, but
the issuance of our money belongs to us, is the only truly legitimate
money and we used Riegel's fixed basis point of time determination of
our unit of purchasing power to beat all of THEIRS in fair trade over
the long run. All of this takes organization, as described, and will
involve, in issuing our own money, retrieving our rightful fiat (OUR will) from
the gross liars and fiends behind contemporary economics, none of whom bothers to challenge the underpinnings of the old existing corrupt machine, what they must do to rid themselves of delusions and false paradigms. You know what? To Hell
with THEM! We expect most of THEM will be going there anyway. But
we won't care because we will finally have our own.
David
Burton
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